CBOE Files Proposal for Canary PENGU ETF Combining Meme Tokens and NFTs

The CBOE BZX Exchange has filed a proposal with the SEC to list the Canary PENGU ETF, a groundbreaking financial product that combines meme tokens and NFTs. This ETF, sponsored by Canary Capital Group LLC, aims to allocate 80-95% of its assets to the Solana-based PENGU memecoin and the remaining 5-15% to Ethereum-based Pudgy Penguin NFTs. The ETF is structured as a Delaware statutory trust and is not registered under the Investment Company Act of 1940.

The proposal marks a significant milestone in the integration of meme tokens and NFTs into institutional finance. If approved, the Canary PENGU ETF could reshape digital asset markets by increasing liquidity and attracting institutional investors to PENGU and Pudgy Penguins. This ETF is the first of its kind, blending two distinct digital asset classes and signaling a growing institutional acceptance of these assets.

The potential approval of the Canary PENGU ETF could set a precedent for more hybrid products featuring meme coins and NFTs. The structure of this ETF aligns with previous crypto ETFs, highlighting a growing institutional acceptance of these assets. Market observers predict that this proposal will influence DeFi markets and blockchains like Solana and Ethereum, reflecting a broader institutional strategy towards diversified digital asset portfolios.

The Canary PENGU ETF is under regulatory review, with a decision expected in Q4-2025 to Q1-2026. The SEC has initiated a formal review process for the registration structure, with a response expected within 240 days. The final decision deadline is expected around the end of February 2026. The approval of this ETF could begin a new chapter in the NFT space, as it could lead to the entire NFT market winning.

The filing of the Canary PENGU ETF has sparked interest and debate among market participants. Users on X have expressed their opinions, highlighting the novelty of the idea and the potential for institutional finance. The filing's importance for Pudgy Penguins' visibility is underscored by the fact that only a few cryptocurrencies, like BTC, SOL, XRP, and DOGE, have reached this stage in the registration process. This trend in crypto continues to amaze users and signals a growing acceptance of meme tokens and NFTs in the financial markets.